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Top and bottom text in the classic style, or your own.
It was not an aesthetic decision. Impact shipped with Windows from the 1990s, so it was available on almost every machine, and it is unusually bold and tightly spaced.
Combined with a black stroke, it stays readable over dark and light areas of an image alike — which is exactly what caption text over an arbitrary photograph needs.
Modern meme formats have largely moved on to plain sans-serif on a white bar above the image, which is more legible still and easier to read on a phone. Both are offered here.
The last one is the useful discipline. A caption composed at full resolution routinely turns out unreadable at the size anyone actually sees it.
Most widely circulated meme templates are photographs somebody took and owns. Their ubiquity is not a licence.
For personal sharing this is rarely a practical issue. For anything commercial — an advert, a brand account, merchandise — it genuinely is, and several well-known templates have produced real legal claims.
If it is for a business, use an image you own, one you have licensed, or one under a licence that permits commercial use and modification.
Practicality rather than style. Impact shipped with Windows so it was available everywhere, and it is very bold and condensed — with a black outline it stays readable over any part of an image.
No. The image is generated on your device and downloaded directly, with nothing added.
Usually not without permission. Most popular templates are photographs someone owns, and ubiquity is not a licence. Several well-known templates have produced real legal claims against commercial use.
Around 8–10% of the image height for the classic style, with a margin from the edges and no more than two lines per block.
It was probably composed at full resolution. Check it at about 300 pixels wide, which is closer to how it appears in a feed — text that reads well at 1200 often does not.